This article was last updated on April 16, 2022
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Renowned Canadian train and aircraft maker, Bombardier Inc., announced in a statement issued on Thursday that it is planning to cut 1,750 jobs in its business jet division primarily due to weaker demand for its Global business jets. The official statement mentioned that “current economic conditions and geopolitical issues in some market regions, such as Latin America, China and Russia, have impacted order intake levels industrywide.” The statement added that it is also cutting production rates of its Global 5000 and Global 6000 aircraft.
Last week, the company’s quarterly results revealed that it may cut production of its profitable Global jets, i.e. its largest business aircraft, due to declining demand worldwide. The report showed that earnings from business jets were stable in the first quarter but net orders dropped to 19 from 46 a year earlier. Thereafter during a conference call after that, Chief Executive Officer Alain Bellemare stressed that the weakness was in the Global large-jet program.
A report issued on Thursday by Montreal-based La Presse detailed the news about the cuts and explained that most of them would be in Bombardier’s home base of Montréal. Whereas, Bombardier has elucidated that the cuts will begin in June 2015 and continue through the first quarter of 2016. According to the company, it will lay off almost 1,750 employees including almost 1,000 in the Montréal region, up to 480 in Toronto and up to 280 in Belfast. Bombardier has nearly 70,000 employees, including about 11,600 in its business jet unit.
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